Investing.com - Financial Markets Worldwide

JPY And GBP Look Oversold, But Don't Go Against The Trend

ByDanske Markets
Published 02/15/2013, 05:40 AM
Updated 05/14/2017, 06:45 AM

This week, we observe significant misalignments in EUR/JPY, EUR/GBP and GBP/USD, all of which trade more than 2 standard deviations from our model estimates. However, we think that these signals have to be interpreted with caution as the market is likely to price in further monetary easing from both the Bank of Japan and the Bank of England. In the event of rising speculation of further monetary easing in the UK, model estimates will lag market developments. This has so far been the case with JPY, where our models have been lagging behind for several months. Moreover, none of the crosses are currently considered overbought or oversold according to our technical monitor and we would not go against these trends at this moment.
Spot deviations from model estimate

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.